UK insurer Aviva has agreed to offload its entire shareholding in Spanish life insurance and pensions joint ventures (JVs) Cajamurcia Vida and Caja Granada Vida to Bankia for €202m.

The value of the deal represents 2.1 times Aviva’s share of the IFRS net asset value and 22.5 times Aviva’s share of earnings after tax of these businesses. As a result of the transaction, Aviva’s Solvency II capital surplus will increase by about £150m.

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Avivagroup CEO Mark Wilson said: “This sale is a strong return for our shareholders. It means that over the past five years we have generated proceeds of £1.3bn from selling almost all of our Spanish operations.

“The transaction further simplifies Aviva, strengthens our already healthy capital position and is another example of our focus on attractive, growing markets where we have high quality franchises.”

Upon completion of the transaction, Aviva will retain a stake in a small life insurance operation, Pelayo Vida7, and a support centre in Spain.

The transaction is scheduled to be concluded during the second quarter of 2018, subject to regulatory and anti-trust approvals.

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The latest comes after a restructuring of the Spanish banking system that began in 2010 which led to consolidation among Aviva’s banking partners. Aviva divested its shareholdings in joint ventures with Bankia and Novacaixagalicia Grupo in 2012 and 2014, respectively. In 2017 year, the company sold the majority of its remaining business to Santalucia.

The combined proceeds of all these sales, including the latestdeal, are estimated to reach nearly £1.3bn.